Frontpage Press Danish banks among...

Danish banks among the strongest in Europe

26 October 2014

The examination and evaluation of Europe’s largest banks show that the Danish banks are among the most well-capitalised in Europe. The result does not affect the Danish Bankers Association’s position that the decision concerning participation in the Banking Union should await further clarifications.

The European Central Bank, ECB, and the national supervisory authorities have together with the European Banking Authority, EBA, carried out the most exhaustive examination and evaluation of the health status of the European bank sector so far. The Danish Financial Supervisory Authority has conducted examinations of four banks, namely Danske Bank, Jyske Bank, Nykredit and Sydbank. 

The examination shows that the Danish banks are among the most robust in Europe. 
 
“In the Danish Bankers Association, we are of course pleased that the Danish banks are so robust that they can withstand even tough economic shocks. It is comforting for the financial stability in Denmark. This comes as no surprise to us, but it is good to get confirmation,” says Chief Executive in the Danish Bankers Association Jørgen A. Horwitz.
 
There is also a reason to be pleased that the health status among the European banks is generally good.
 
“Despite that not all the European banks passed, the stress test expresses that we have put the worst repercussions of the crisis behind us, and that we once again can look ahead. It is important for the European economy’s development,” says Jørgen A. Horwitz.
 
The health status of the European banks is only one of those elements of uncertainty that the Danish Bankers Association has presented in terms of whether Denmark should participate in the European Banking Union.
 
“The result does not change our position. It is good to note that the health status among the European banks are good – however, there are a number of circumstances, where it is still unclear, which complications it can have for the Danish banks, and thereby also for the Danish society, if we join the Banking Union at present,” says Jørgen A. Horwitz.  
 

Facts about the stress test:

The European Central Bank, ECB, and the national supervisory authorities have together with and The European Banking Authority, EBA, conducted the most exhaustive stress test of the largest banks in Europe.
 
The basis for the EBA’s stress test is an assessment of the quality of the banks’ assets (asset quality review). For those banks, where the ECB takes over the supervision in November 2014 in connection with the introduction of the so-called “single supervisory mechanism ” in the euro-countries, the assessment has been conducted by the ECB. For non-euro countries national supervisory authorities have conducted the assessment.
 
The Danish Financial Supervisory Authority has conducted an assessment of the quality of the assets of the four largest Danish banks, which are part of the EBA’s stress test. The included banks are: Danske Bank, Jyske Bank, Nykredit and Sydbank. The Swedish Financial Supervisory Authority conducts the examination of Nordea, as the stress test is conducted on the top parent company in a concern.
 
The EBA’s stress test, with basis in the examination of the quality of the banks’ assets, hereby provides an assessment of the health status of the European banks.
 
 

Further information:

Chief Executive Jørgen A. Horwitz, The Danish Bankers Association, via press manager Mikael Winkler, phone: + 45 33 70 10 15.
 
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